Chaffetz, Conyers, Smith, Issa and Bachus Call for FOIA to Apply to Fannie-Freddie

Press Release

oday Rep. Jason Chaffetz (UT-03) joined with Reps. Conyers (MI-14), Smith (TX-21), Issa (CA-49) Bachus (AL-6) and others to introduce HR 5539, a bill designed to bring greater transparency to the mortgage giants who have received billions in federal taxpayer dollars. HR 5539 would apply the Freedom of Information Act (FOIA) to the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") during periods when these entities are in conservatorship or receivership, as they are now.

"The American people have a right to know what activities their taxpayer dollars are bailing out," said Chaffetz. "Fannie and Freddie were chartered by the federal government. They're currently managed by board members chosen by the federal government. And the federal government has sunk at least $145 billion into Fannie and Freddie, with hundreds of billions more in potential liability. FOIA makes possible a level of transparency and accountability in federal agencies that is desperately needed here."

House Judiciary Committee Ranking Member Lamar Smith stated, "The excessive risks taken by executives at Fannie Mae and Freddie Mac significantlycontributed to the recent economic recession and left taxpayers bailing out government-chartered financial institutions to the tune of up to $1 trillion. We must ensure that government-sponsored organizations dependent on taxpayer dollars are held accountable for their use of federal funds. Requiring Fannie and Freddie to comply with FOIA will provide much-needed transparency so American taxpayers can see exactly how government-controlled institutions are spending our tax dollars."

House Committee on Oversight and Government Reform Ranking Member Darrell Issa stated, "Fannie Mae and Freddie Mac are being run by the federal government to achieve objectives set by the federal government. As long as this continues, it's a matter of common sense that they should be subject to Freedom of Information Act requests."